North Carolina Down Payment Support Systems

Payments Gateway - These programs are the Mortgage Credit Certificate and also the deposit Assistance Program.

You buy a home and December 1, 2009 and if you meet the requirements for one of the plans, it is also possible to be eligible for the $8,000 tax credit merely enacted into law.

First, who is a First Time Home Buyer? A first-time Home Buyer is someone who hasn't owned a home in the prior three years. This is the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

An MCC “reduces your tax liability based on a share of the mortgage interest which you pay.

If you qualify for the MCC, you are able to claim 20% of the interest you pay as a credit in your federal income taxes on your own mortgage. You are able to save as much as $2,000 on your taxes.

You'll have the ability to combine this with the $8,000 tax credit if you do qualify for 2009. This could reduce a purchaser's tax liability .

Household income means the “gross income of the mortgagor and any other man anticipated to live in the residence who's 18 years of age or older.”

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limitations New Home $220,000 Existing Home $210,000

Who Qualifies for Down Payment Help?

Home buyers that need help with their deposit and closing prices might be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The customer just has to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.

This program has stricter income limits than the MCC program outlined above. Like the MCC application, it may be used in combination with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment help, nevertheless, can't be used together with all the MCC. That is an either or situation.

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Men $45,650 3 Persons $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing Residence $210,000